A private company in mumbai offers local conveyance reimbursement for all employees travelling to office during covid to compensate against absence of public transport (only essential services workers were permitted public transport during that period). The actual expenses are claimed by the employees and reimbursed in full. The reimbursed amount now reflects under Salary --> Perquisites --> Free or Concessional travel with no tax exemption.
Is there no tax exemption in the above case? Since it's more of an expense claim reimbursement and not income. Is this specified under any provisions of the IT act?
CAclubindia
